Electricity tariffs are the amount of the money that is charged by the electricity company for supplying electric power to its various consumers. This electric tariff normally covers the cost of producing the electric power, supplying that power plus other reasonable costs that they consider as profit. So tariff can simply be concluded as the limit at which a consumer is supposed to pay for these services which normally changes from time to time so it is necessary as a consumer to keep yourself updated on any changes that might arise to avoid being surprised with a huge electricity bill. Electricity tariff normally depends on certain factors. Consumers do not pay the same amount of money.
Types of Load
This is the amount of electricity that is consumed per a given period of time. When we talk of load, we further classify it into three categories which are industrial, domestic, and commercial. It is a common knowledge that industrial consumers normally consume more energy for a longer period than domestic consumers do and therefore, the tariff of the former is much higher than that of the latte. It should be understood that the tariff may change due to various requirements.
Demand
The cost and the amount of electricity that is produced by a given power station will largely depend on the number of connectivity. If the connectivity is high, we would expect to find a reasonable tariff because they are producing electricity on a large scale and therefore the cost of producing this power is relatively low.
The power factor
This is another factor that we need not to ignore because if the plant is producing a low power factor, it will subsequently increase the load power which will lead to losses in the system therefore you need to take these factors into consideration to avoid this problem in future.
Various types of electricity tariff
There are various kinds of tariffs that you will need to know and these electric tariff includes:
-flat rate demand tariff
This kind of tariff is normally expressed in the form of equation C=Ax. The distinguishing characteristic of this tariff is that the bill is only based on the maximum demand of the load. Only this type of rate is normally applied in the street lighting, irrigation, and sign lighting because there is no metering system that is applied in this type of system.
-meter rate tariff
This is another type of tariff that is also expressed as an equation C = By. In this case, the bill will entirely depend on the consumption of the load, so the higher the consumption load the higher the bill and the reverse.
-Block meter rate tariff
This is where the energy consumption is divided into three blocks whereby the first block has a lower price and the second block has a slightly higher price. This means that energy consumption will differ from month to month depending on the appliances that you are using.
Conclusion
The above information is all about electric tariff meaning for you to understand enough what electricity tariff is all about and how you can determine which tariff is friendly to you can enjoy the power all the way. Understanding electricity tariffs and Duke Energy rates per kWh empowers consumers and businesses to make informed choices regarding their energy consumption, cost management, and participation in energy-saving programs.